SGS and Bureau Veritas (BV) have ended talks to negotiate a merger between the two companies. Each issued a press release today, January 27, reporting that the negotiations had ended.
"These discussions have stopped and did not result in an agreement despite a strong belief in the value of consolidation in the testing, inspection, and certification sector," said Bureau Veritas. The company reported it, "Remains fully committed to its LEAP | 28 strategy to deliver a step change in growth and performance, targeting high single-digit total revenue growth, consistent adjusted operating margin improvement, double-digit shareholder returns, and dividend yield, and strong cash conversion."
SGS said, "The group remains focused on the continued execution of Strategy 27 – ‘Accelerating growth, building trust’ and delivering superior value to its shareholders."
"This is not the first time the companies have engaged in talks," said Jean-Philippe Bertschy an analyst at asset manager at Vontobel. He wrote the companies "have been eyeing each other for years," speculating this is "probably the third or fourth time such talks have taken place."
Shares in BV lost as much as three percent in post-announcement trading. SGS shares rose nearly five percent after the announcement.
"These discussions have stopped and did not result in an agreement despite a strong belief in the value of consolidation in the testing, inspection, and certification sector," said Bureau Veritas. The company reported it, "Remains fully committed to its LEAP | 28 strategy to deliver a step change in growth and performance, targeting high single-digit total revenue growth, consistent adjusted operating margin improvement, double-digit shareholder returns, and dividend yield, and strong cash conversion."
SGS said, "The group remains focused on the continued execution of Strategy 27 – ‘Accelerating growth, building trust’ and delivering superior value to its shareholders."
"This is not the first time the companies have engaged in talks," said Jean-Philippe Bertschy an analyst at asset manager at Vontobel. He wrote the companies "have been eyeing each other for years," speculating this is "probably the third or fourth time such talks have taken place."
Shares in BV lost as much as three percent in post-announcement trading. SGS shares rose nearly five percent after the announcement.
